DNOW (DNOW) Beats Q1 Earnings and Revenue Estimates

Core Insights - DNOW reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, and showing an increase from $0.21 per share a year ago, resulting in an earnings surprise of 15.79% [1] - The company achieved revenues of $599 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.66% and increasing from $563 million year-over-year [2] - DNOW shares have increased approximately 23.2% since the beginning of the year, contrasting with a decline of -4.7% in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.23, with projected revenues of $630.3 million, and for the current fiscal year, the EPS estimate is $0.93 on revenues of $2.48 billion [7] - The estimate revisions trend for DNOW is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Manufacturing - General Industrial industry, to which DNOW belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact DNOW's stock performance [5]